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An Analytical Study on Productivity of Indian

Commercial Banks and Job Satisfaction of Employees

A Summary Submitted to Kurukshetra University, Kurukshetra

For the Award of the degree of

DOCTORATE OF PHILOSOPHY

Submitted By: KAMLESH M.com, MBA, M.Phil

Under The Supervision of: Dr. Hawa Singh Professor Department of Commerce Kurukshetra University, Kurukshetra

DEPARTMENT OF COMMERCE

KURUKSHETRA UNIVERSITY, KURUKSHETRA 2014

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SUMMARY

The term bank is being used since long time but there is no clear conception regarding its

beginning. Origin of the bank belongs to the word 'Banchi' or to the Greek Word banque. Both

these words refer to some kind of banking. 'Casa De Son Giorgio' was the first bank to be

established in 1148. The first public bank was bank of Venica. It was establish in 1157. In simple

words, Bank refers to an institution that deals in money. The institution accepts deposits from the

people and gives loans to those who are in the need. Besides dealing in money, banks these days

perform various other functions, such as credit creation, agency job and general service. Bank,

therefore, is such an institution which accepts deposit from the people, gives loans, creates credit

and undertakes agency work. Banking System occupies an important place in a nation's

economy. A banking system plays a pivotal role in the economic development of a country and

form the core of the money market. The business of banking is as old as the civilization itself. As

early as 2000 B.C. The Babylonians had developed a system of banking. They used their temples

for leading at higher rates of interest against gold and silver which had been left with them for

safe custody. In India, the ancient Hindu scriptures refer to money lending activities in the Vedic

period. In the initial stages, the banking largely meant money landing and it was restricted to

selected number of families working as sole proprietary firms.

Modern banking in India started only in 18th century. The first bank in India was

established in 1770 by an Agency House namely, Alexandra and Co. This bank was named as

'Bank of Hindustan'. With government assistance, presidency Bank of Bengal, Presidency Bank

of Bombay and Bank of Madras were established respectively in 1806, 1840 and 1843. Oudh

Commercial Bank was the first limited liability bank established in 1881 by the Indians. In 1894,

the Punjab National Bank and in 1901 the Peoples Bank were established. In 1921, all the three

Presidency Banks were merged to become imperial Bank of India. In 1935, Reserve Bank of

India was established. The RBI is India's central Bank.

Since independence, Indian Banking system has made a significant progress. For the

healthy growth of the banking system in the country banking regulation Act, was passed in 1949.

According to this act Reserve Bank of India was authorized to control the banking system in

Country. In 1955, imperial Bank was nationalized and renamed as state Bank of India. This was

the first public sector bank in the country.

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In July 1969, 14 major banks and in April 1980, 6 more banks were nationalized. The

total number of schedule banks was 358. In 1994, it comes down 76and between 1949 and 1959

as many as 388 banks have failed. To check this trend, amalgamation of banks was taken up in

1960. During the period of 1960 and 1970 as many as 212 banks were amalgamated. In 1951,

there were 470 non-scheduled Banks in country. In 1993 due to merger of New Bank with PNB,

the number of nationalized banks reduced to 19. There has been noticeable increase in the

branches of scheduled banks while that of non -scheduled banks have decreased. Scheduled

banks have opened most of their new branches in villages and sub-urban areas. In 1969, there

were 8,262 branches of scheduled Banks and in Jan, 2000 these increased up to 64,980. On 14

Nov 2002, New Delhi, PNB and BOI (Bank of India) decide to share their Automatic Teller

Machine (ATM). In March 2006, the RBI allowed Warburg Pincus to increase its stake in 'Kotak

Mahindra Bank' (a private sector bank) to 10%. This is the first time; an investor has been

allowed to hold more than 5% in a private sector bank. The RBI announced norms in 2005 that

any stake exceeding 5% in the private sector bank would need to be vetted by them. In 2007,

banking in India is generally fairly mature in terms of supply, product range but reach in rural

India still remain a challenge for private sector and foreign banks. State Bank of Saurashtra

merged with SBI w.e.f. August 13, 2008. With the growth in the Indian economy, demand for

banking services especially retail banking, mortgages and investment services are expected to be

strong.

CLASSIFICATION OF BANKS

All bank which are included in the second schedule of the Reserve Bank of India Act,

1934 are scheduled Banks. These banks comprise scheduled commercial banks and scheduled

co-operative banks. Scheduled commercial banks in India categorized into five different groups

according to their ownership. These bank groups are (i) State Bank of India and its Associates

(ii) Nationalized Banks (iii) Private Sector Banks (iv) Foreign Banks and (v) Regional Rural

Banks.

PRODUCTIVITY

Productivity is the key to prosperity of any nation. Productivity growth is a vital factor

for continuous economic growth and increase in standard of living. Every sector should strive

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hard to enhance the productivity as the increase in productivity aims at efficient and effective

utilization of resources at the disposal of the nation or an organization whether local or global.

Although, there is all around efforts in most of the institutions and a vast experience gained by

people in various sectors, there is a dearth of knowledge on productivity concepts and related

experiences which are to be made available to all people in various sectors irrespective of their

level and contribution in their organization. Productivity measures a firm‟s performance over

time; efficiency measures a firm‟s performance relative to a benchmark at a given point in time.

Both measures are relevant in attempting a comparison between the private, public sectors and

foreign banks.

DEFINITION

Productivity is defined as the goods and services produced per unit of labour, capital or

both. The ratio of output to labour and capital is a total productivity measure. In simple words,

productivity is the output per unit of input employed.

Input

outputtyProductivi

Kopleman has defined productivity as the relationship between physical output of one or

more of the associated physical inputs used in production. When single input is used to measure

productivity, it is called „factor productivity‟ and when all factors are combined together for the

purpose, it is known as „total factor productivity.‟ It is common to see the terms „productivity‟

and „efficiency‟ being used interchangeably in literature. However, productivity is more a

measure of performance of labour, which is one of the factors of production. Efficiency, on the

other hand, is a much broader term which represents the performance of all factors of production.

In case of banks, while productivity measures the performance of their staff, efficiency

represents the combined performance of staff, capital and management. The concept and

definition of productivity as applied in manufacturing industries cannot be applied as such in

banking industry because it is primarily a service industry. In the field of banking, the various

products are accounts, drafts, exchange remittances, cheques, travellers cheques, credit cards,

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debit cards, services for guarantees, various kinds of loans like housing loan, education loan, car

loan etc. Identification and measurement of output in banking is very difficult exercise as it is not

possible to bring various services to measure output. However, banking being an important

economic activity cannot afford to lose sight of the concept of productivity. Application of the

concept in the Indian banking industry becomes all the more difficult, as it gets associated with

such diverse aspects like operational cost effectiveness, profitability, customer services, priority

sector lending, mobilization of deposits, deployment of credit in rural and backward regions. But

as we know that banks are the mirror of an economy. Therefore better functioning of banking

sector may lead to the overall improvement of the economy. In fact, banks act as a link between

those who want to save and those who want to invest, so improvement in the productivity of the

banking sector is very much needed who want to save and obviously, difficulty is not in applying

the broader concept of productivity as ratio of output and input, but is in measuring output in the

form of services. The concept of productivity analysis in banking sector may give misleading

results, if not used carefully. Productivity at the national level is dependent on various factors

like per capita income, saving habits and banking habits. In addition to it, there are regional

variations which affect the productivity of various players in the banking field. So in order to

have a reliable idea of productivity, it is necessary to analyze every segment, different sizes of

banks and region wise positioning of banks.

HUMAN RESOURCE AND ITS SIGNIFICANCE

In this highly competitive world, success of any organization depends on its human

resource. Banks are no exception to this. A satisfied, happy and hardworking employee is the

biggest assets of any organization, including banks. Workforce of any bank is responsible to

large extent for its productivity and profitability. Efficient human resource management and

maintaining higher job satisfaction level in banks determine not only the performance of the

bank but also affect the growth and performance of the entire economy. So, for the success of

banking it is very important to manage human resource effectively and to find whether its

employees are satisfied or not only if they are satisfied, they will work with commitment and

project a positive image of the organization.

So in this competitive environment it is necessary to know the employees views toward

their job and to measure the level of satisfaction with various aspects of job satisfaction. The

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employees of the bank are valuable assets to the bank. If they are highly satisfied they produce

more and it is profitable for the organization.

CONCEPT OF JOB SATISFACTION

Job satisfaction describes how content an individual is with his or her job. It is a

relatively recent term since in previous centuries the jobs available to a particular person were

often pre-determined by the occupation of that person‟s parent. There are a variety of factors that

can influence a person‟s level of Job satisfaction. Some of these factors include the level of pay

and benefits, the promotion system within a company, the quality of the working condition,

leadership and social relationships and the job itself. Job satisfaction is an integral component of

organization climate and an important element in the management employee‟s relationship. Job

satisfaction means individuals emotional reaction to job it. It is a positive emotional state that

occurs when a person‟s job seem to fulfill important job values provided. If people are satisfied

their job, then they will become happy and more devoted to their job. Job satisfaction is not the

same as motivation, although it is clearly linked. Job design aims to enhance job satisfaction and

performance methods include job rotation, Job enlargement and Job enrichment. Other

influences on satisfaction include the management style and culture, employee involvement,

empowerment and autonomous workgroups. Job satisfaction is a very important attribute which

is frequently measured by organizations.

A job satisfaction is a positive attitude toward one's Job. A few important definitions on

job satisfactions are produced here.

Locke defined job satisfaction as “A pleasurable or positive emotional state resulting

from the appraisal of one's job or job experience."

Feldman and Arnold defined job satisfaction as "Job satisfaction will be defined as the

amount of overall positive affect that individuals have towards their jobs."

Davis and Newstrom defined job satisfaction as "Job satisfaction is a set of favorable or

unfavorable feelings with which employees view their work".

Thus, job satisfaction means good or positive attitude or feeling toward one's job. It is

important to mention that an individual may hold different attitudes toward various aspects of the

job. Characteristics of individuals also influence, job satisfaction. Individuals with high positive

affectivity are more likely to be satisfied with their jobs.

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RESEARCH METHODOLOGY

This chapter explains the research methodology being followed to carry out the study. It

includes rationale of the study, research designs, objectives, hypothesis, and scope of the study,

source of data, research instruments, sample design, sample size, statistical techniques, and

limitations of the study and chapter scheme. A precise description of these aspects is explained

below:

RATIONALE OF THE STUDY

Productivity gains in the banking industry are very important for providing supportive

financial infrastructure for economic development. Productivity of the banks has been regarded

as crucial areas for a country‟s economic development. The economic reform process has started

in 1991 and posed a challenge to banker as never before. After liberalization, various new private

sector banks and foreign banks have joined the banking industry in India. This study examines

the productivity of public, private and foreign banks. There are large numbers of studies which

compare the productivity of public and private sector banks. However, only a few studies have

focused on productivity comparison of three sectors: public, private and foreign banks.

Secondly, this study also examines the job satisfaction of bank employees. To provide

better product and services to customers and serve them in better way, skills and commitment of

employees are required. The organization that does the things better and before others can avail

the opportunities and that will become the leader in the market. The importance of manpower

cannot be ignored in present competitive situation. Over and above the output given by them

contribute a lot in the progress of the banking sector. So, to achieve that job satisfaction of

employee plays an important role. Committed and better performance of every individual is

needed in attaining the objectives of the organization. Therefore, output per person, system,

machine etc. is required and that is called productivity. Productivity is a very important

parameter to measure the performance of a bank. Job satisfaction plays a pivotal role in the

performance of the employeein the organisation. So, I decided to study Productivity of Indian

Commercial Banks and Job Satisfaction of Employees.

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RESEARCH PROBLEM

There is lot of literature on productivity of Indian commercial banks. But majority of the

study are based on sample or focus on only the one sector e.g. public or private. There are few

studies which study the whole population i.e. all public, private and foreign banks. The current

research is based on the whole population of public, private and foreign commercial banks. The

primary objective of the study is to examine the productivity of Indian commercial banks

(public, private and foreign banks). There are three major ingredients that contribute to

productivity excellence, viz. Technology, Processes and People. Human resource is the most

important asset of an organization and banking business is no exception to it. The review of

literature carried out in chapter-2 has brought out some important facts and issues of banking

sector in India. The present research problem is “An Analytical Study on Productivity of

Indian Commercial Banks and Job Satisfaction of Employees”.

OBJECTIVES OF THE STUDY

The main objective of the study is to examine the productivity of Indian commercial

banks and job satisfaction of bank employees. The other objectives are as follow:

To study and compare the productivity of public, private and foreign commercial

banks during the study period 2001-02 to 2011-12.

To indentify the various factors affecting the productivity of Indian scheduled

commercial banks (public, private and foreign banks).

To measure the extent of job satisfaction among employees of Indian scheduled

commercial banks (public and private sector banks).

To find out differences in the level of job satisfaction between the employees of

public sector banks and private sector banks.

To make suggestions to bank management for enhancing the satisfaction level of

bank employees and productivity of banks.

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HYPOTHESIS OF THE STUDY

Keeping in view survey of literature and objectives of the study, the following hypotheses

are framed:

There is no significant difference in productivity of public, private and foreign banks

during the study period 2001-02 to 2011-12.

There is no significant difference between the employees of public sector and private

sector banks regarding various aspect of job satisfaction.

SCOPE OF THE STUDY

As far as scope of the study concerned, for productivity analysis it covers all the 26

public sector banks, 20 private sectors banks and 41 foreign banks functioning in India. For job

satisfaction analysis it covers 4 banks, two of them public sector bank and two private sector

banks in Haryana state. The state of Haryana is decided as the sample area for the study. The

reason for selecting Haryana as the sample area is in consideration of the existence of a well-

organized and large network of banks. The private sector banks also have a very good presence

in the state. The five districts are selected out of twenty one districts of Haryana and these are

Gurgaon, Ambala, Kurukshetra, Karnal and Kaithal.

RESEARCH DESIGN

This study used descriptive cum diagnostic type of research design. This study is

descriptive because it studies about the productivity of Indian commercial banks and job

satisfaction of employees. On the other hand it is diagnostic because it studies the causes of

productivity of Indian commercial banks.

The next step is to design the research in such a manner that the requisite data can be

collected and analyzed. It is an arrangement of various aspect of research design with regards to

the type of investigation, the unit of analysis, sampling design, data collection method and data

analysis process.

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DATA COLLECTION METHOD

This study is based on primary as well as secondary data. Secondary data was used to

understand the emerging trends regarding productivity of public, private and foreign banks. The

primary data was collected to measure satisfaction level among public and private bank

employees.

Secondary Data

The secondary data has formed the major source of study. The data regarding branches,

profit, advances, deposit, employee and business etc. have been collected from the statistical

table related to banks, report on trend and progress of banking in India, RBI bulletins, SBI

monthly review, CMIE data base prowess and other research Journals. The time period of the

study is divided into two sub-periods.

Pre Global Financial Crisis Period (2002-2007): This was the growth phase when the

impact of reforms was fully felt. This period was characterized by technology up

gradation by banks, benefit of global liquidity and a period of growth. This was also the

phase of build-up of risks due to the irrational exuberance exhibited by market players.

Post Global Financial Crisis Period (2008-2012): This phase is dominated by the global

financial crisis and post crisis pains. The risks building up in the previous phase

crystallized during this period. The period is also characterized by reforms fatigue, lack

of banking penetration, absence of internal reforms and ineffective structure, systems and

people.

Primary Data

The primary data have been collected through questionnaire as well as interviews. The

data on job satisfaction was collected through standardized questionnaire which was taken from

the study of Dr. Hawa Singh on “Organisational Health of Haryana Tourism Corporation in

Relation to Commitment, Job Satisfaction and Some Allied Attributes”. It contains 36 statements

concerning various aspect of employee satisfaction measured on 3 point ordinal scale ranging

from agree, disagree and undecided.

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SAMPLE DESIGN

For the purpose of collecting primary data 4 commercials banks, 2 public sectors and 2

private sector banks namely State Bank of India and Punjab national Bank, HDFC Bank and

Axis Bank was taken as sample. The banks were selected on the basis of no. of employees. The

bank which has highest number of employees in 2012 is selected. To measure the extent of job

satisfaction, it is logical to choose no. of employee as a base to select the bank. The branches of

these banks are selected on the basis of their availability in the state of Haryana. The five

districts are selected out of twenty one districts of Haryana and these are Gurgaon, Ambala,

Kurukshetra, Karnal and Kaithal. A total of 120 employees of selected banks 30 from each bank

have been approaches to ascertain their views on job satisfaction. The judgmental sampling is

used while selecting the employee of banks.

TABLE 1: SELECTION OF SAMPLE

Rank Public Sector Banks No. of Employees Rank Private sector Banks No. of Employees

1 SBI 2,15,481 1 HDFC 66,076

2 PNB 57,997 2 Axis Bank 31,738

Source: Report on trend and progress of Banking in India, RBI www.rbi.org.in (2002-2012)

STATISTICAL TECHNIQUES USED

The secondary and primary data was analyzed by using various statistical techniques. In

order to study the employee productivity, branch productivity aspect and relatives performance

of various banks 8 parameters have been applied:

Per Employee Indicators (Employee Productivity)

1. Net profit per employee 2. Business per employee

3. Deposit per employee 4. Advance per employee

5. Total income per employee 6. Total expenditure per employee

7. Spread per employee 8. Burden per employee

Per Branch Indicators (Branch Productivity)

1. Net Profit per Branch 2. Business per Branch

3. Deposits per branch 4. Advance per Branch

5. Total Income per Branch 6. Total Expenditure per Branch

7. Spread per Branch 8. Burden per Branch

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To interpret and analyze the tables descriptive statistics like arithmetic mean, standard

deviation and coefficient of variation has been used. The exponential growth rate has been

computed to know the long term potential of a bank in business. Exponential growth as the effect

of compound growth over a long period of time and exponential growth is average year-on-

year growth rate over a number of years. In order to judge the overall performance of all the

scheduled commercial banks in India, it becomes imperative to know the relative efficiency of

each sector. For this purpose, Herfindhal‟s index of concentration has been computed. Further

overall performance of 3 sectors (public, private and foreign banks) is evaluating through

CAMEL Model. It is a management tool that measures capital adequacy, assets quality, and

efficiency of management, earnings‟ quality and liquidity of financial institutions.

After collection of primary data coding of responses was performed. Coding is the

process of assigning numerical codes or other character symbols. The data from questionnaire

was transferred to coding sheets and the same was manually keyed into the computer through

excel software program. The responses on statements concerning employee satisfaction towards

banks employees were measured on 3 point scale with 0 denoting “disagree”, 1 denoting

“undecided” and 2 denoting “agree”. The raw data was then exported to statistical package for

social sciences (SPSS) Data Editor 16.0 for further analysis. In order to analysis the data

collected from survey, statistical tools viz. descriptive analysis, factor analysis and student t-test

were used. Factor Analysis technique was used to reduce the number of attributes affecting

employee satisfaction. The factor analysis approach consists of statistical procedure which can

be applied to a set of variables to discover which variable from coherent clusters, are relatively

independent of one another. The variables that are correlated with one another, but largely

independent of other clusters of variables, are combined into factors. A factor, in factor analysis,

is considered to be linear combination of interrelated variables. Factors are thought to reflect

underlying processes which generate correlation among variables. A factor analysis is used to

summarize patterns of correlations among observed variables and to reduce the number of

observed variable to a smaller number of factors. Since variable involved in the present study

(job satisfaction) are numerous, there was a need to find out the main factors concerned with

employee satisfaction. To determine the significant difference between means of two groups

(public and private banks) t-test was applied.

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The details of the statistical technique used are as follows:

Mean (Arithmetic Mean)

Mean ( X ) = X / N Where X = Sum of series of observations, N = Number of items.

Standard Deviation

S.D. (σ) = x2 / N Where x = (Xi- X ), N = Number of items, X = Mean of series,

(Xi- X )= deviation from the mean, Xi = ith values of the variable

X.

Coefficient of variation (CV)

CV = (σ/ X ) × 100 Where σ is Standard Deviation (S.D.) and X is the mean of the series.

Exponential Growth Rate

100

t

Yfirst

YlastLN

EGR Where LN = Natural Logarithm, t = Number of years.

Herfindhal Index of Concentration

t-test

t = X 1- X 2 / (ŝ n1n2/n1+n2) Where n1 = 1st Sample Size, n2= 2

nd Sample Size,

X 1=Sample mean (1st sample) X 2= Sample mean (2

nd

sample),

ŝ = Modified Standard deviation of the sample.

LIMITATION OF THE STUDY

The limitations of the research study are:

Inspite of my best efforts, the foreign banks refused to approach the employees for the

purpose of filling questionnaire of job satisfaction. So, without responses from foreign

banks employees job satisfaction of foreign banks employees can‟t be included in the

study.

There was possibility of personal bias of respondents. However, special care was taken to

get unbiased responses from banks employees. The purpose of the study was clearly

explained to them. Further it was assured to them that the data and findings will be used

for academic purpose only.

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To get adequate responses from bank employees is difficult task because of their busy

scheduled.

The primary study has been confined only to Haryana state. The primary data collection

was restricted to only four banks, two of them public sector bank and two private sector

banks. It suggested that in order to generalize the findings to the banking industry in

India, the study should be expanded to include other private and public sector banks.

Another limitation of the study was non-coporative attitude of the employees.

CHAPTER SCHEME

The research study is divided into five chapters.

Chapter 1 Introduction:

It describes the concepts and emerging scenario of banking sector in India, productivity,

job satisfaction of employee and other topic related to the study.

Chapter 2 Literature Review:

It presents a review of the relevant research literature concerning various aspects of

objectives of the present study.

Chapter 3 Research Methodology:

It presents research methodology of research in which detailed discussion of research

design is given.

Chapter 4 Analysis and Interpretation:

It contains the result of the study about the productivity of Indian scheduled commercial

banks and job satisfaction of employees.

Chapter 5 Findings, Suggestions and Recommendations:

It presents the findings of the study with discussion on the findings, implications of the

results and recommended future areas of work.

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FINDINGS

Finding Related To Employee Productivity of Public Sector Banks

The main findings relating to employee productivity of public sector banks of the study are as

follow:

On the basis of mean of profit per employee IDBI Ltd., Corporation Bank, Oriental Bank

of Commerce, Andhra Bank and Bank of Baroda are top five banks while State Bank of

Mysore, Punjab & Sind Bank, Syndicate Bank, UCO Bank and United Bank of India are

lowest five banks. The highest consistency (low value of coefficient of variation) in profit

per employee productivity was found in IDBI Ltd. followed by Oriental Bank of

Commerce, State Bank of Patiala, Indian Overseas Bank and Corporation Bank while

lowest consistency (high value of coefficient of variation) was found in Bank of Baroda,

Dena Bank, Bank of Maharashtra, Punjab & Sind Bank and Central Bank of India.

On the basis of mean of business per employee IDBI Ltd., Oriental Bank of Commerce,

Corporation Bank, Bank of Baroda, Bank of India are top five banks while Indian Bank,

United Bank of India, State Bank of Mysore, State Bank of India (SBI) and State Bank of

Bikaner and Jaipur are lowest five banks. The highest consistency (low value of

coefficient of variation) in business per employee productivity was found in IDBI Ltd.

followed by Canara Bank, State Bank of Patiala, Oriental Bank of Commerce and State

Bank of India (SBI) while lowest consistency (high value of coefficient of variation) was

found in United Bank of India, Indian Bank, Bank of Maharashtra, Punjab & Sind Bank

and Central Bank of India.

On the basis of mean of deposit per employee IDBI Ltd. followed by Oriental Bank of

Commerce, Corporation Bank, Bank of Baroda, Union Bank of India are top five banks

while Central Bank of India, United Bank of India, State Bank of Mysore, State Bank of

India (SBI) and State Bank of Bikaner and Jaipur are lowest five banks. The highest

consistency (low value of coefficient of variation) in deposit per employee productivity

was found in IDBI Ltd., Bank of Maharashtra, State Bank of Patiala, Oriental Bank of

Commerce and State Bank of India (SBI) while lowest consistency (high value of

coefficient of variation) was found in United Bank of India, Indian Bank, Bank of India,

Punjab & Sind Bank and Bank of Baroda.

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On the basis of mean of advances per employee IDBI Ltd., Corporation Bank, Oriental

Bank of Commerce, Bank of Baroda and Union Bank of India are top five banks while

Bank of Maharashtra, State Bank of Bikaner and Jaipur, State Bank of Mysore, Central

Bank of India and United Bank of India are lowest five banks. The highest consistency

(low value of coefficient of variation) in advances per employee productivity was found

in IDBI Ltd. followed by Oriental Bank of Commerce, State Bank of Patiala, State Bank

of Travancore and State Bank of India while lowest consistency (high value of coefficient

of variation) was found in Bank of Baroda, United Bank of India, Punjab & Sind Bank,

Indian Bank and Central Bank of India.

On the basis of mean of total income per employee IDBI Ltd., Corporation Bank,

Oriental Bank of Commerce, Union Bank of India and Andhra Bank are top five banks

while Bank of Maharashtra, State Bank of Bikaner and Jaipur, State Bank of Mysore,

Central Bank of India and United Bank of India are lowest five banks. The highest

consistency (low value of coefficient of variation) in total income per employee

productivity was found in IDBI Ltd. followed by State Bank of India, Bank of

Maharashtra, Oriental Bank of Commerce and State Bank of Travancore while lowest

consistency (high value of coefficient of variation) was found in Bank of India, UCO

Bank, Punjab National Bank, Indian Bank and Punjab & Sind Bank.

On the basis of mean of total expenses per employee (low expenses per employee) IDBI

Ltd., Corporation Bank, Oriental Bank of Commerce, Vijaya Bank and State Bank of

Patiala are top five banks while Bank of Maharashtra, Central Bank of India, State Bank

of Bikaner & Jaipur, State Bank of Mysore and United Bank of India are lowest five

banks. The highest consistency (low value of coefficient of variation) in total expenses

per employee productivity was found in IDBI Ltd. followed by State Bank of India, Bank

of Maharashtra, State Bank of Hyderabad and Dena Bank while lowest consistency (high

value of coefficient of variation) was found in Corporation Bank, Central Bank of India,

Bank of India, Canara Bank and Punjab & Sind Bank.

On the basis of mean of spread per employee IDBI Ltd., Corporation Bank, Oriental

Bank of Commerce, Andhra Bank and Bank of Baroda are top five banks while Bank of

Maharashtra, Central Bank of India, UCO Bank, State Bank of Mysore and United Bank

of India are lowest five banks. The highest consistency (low value of coefficient of

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variation) in spread per employee productivity was found in Corporation Bank followed

by State Bank of Patiala, State Bank of Travancore, Oriental Bank of Commerce and

Vijaya Bank while lowest consistency (high value of coefficient of variation) was found

in Punjab & Sind Bank, Allahabad Bank, UCO Bank, IDBI Ltd. and Indian Bank.

On the basis of mean of burden per employee (low burden per employee) Canara Bank,

State Bank of Patiala, State Bank of Hyderabad, Corporation Bank and IDBI Ltd. are top

five banks while Punjab & Sind Bank, Bank of Maharashtra, Syndicate Bank, Central

Bank of India and Indian Overseas Bank are lowest five banks. The highest consistency

(low value of coefficient of variation) in burden per employee productivity was found in

IDBI Ltd. followed by Syndicate Bank, United Bank of India, Indian Bank and Punjab

National Bank while lowest consistency (high value of coefficient of variation) was

found in Dena Bank, Bank of India, Corporation Bank, State Bank of Patiala and State

Bank of Hyderabad.

Finding Related To Employee Productivity of Private Sector Banks

The main findings relating to employee productivity of private sector banks of the study are as

follow:

On the basis of mean of profit per employee YES Bank, ICICI Bank, Axis Bank, HDFC

Bank and Indusind Bank are top five banks while Ratnakar Bank, Lakshmi Vilas Bank,

Catholic Syrian Bank, Dhanalakshmi Bank and Development Credit Bank are lowest five

banks. The highest consistency (low value of coefficient of variation) in profit per

employee productivity was found Development Credit Bank, ICICI Bank, Karnataka

Bank, Axis Bank and HDFC Bank while lowest consistency (high value of coefficient of

variation) was found in Catholic Syrian Bank, YES Bank, ING Vysya Bank, Ratnakar

Bank and Dhanalakshmi Bank.

On the basis of mean of business per employee YES Bank, ICICI Bank, Axis Bank,

HDFC Bank and Indusind Bank are top five banks while Ratnakar Bank, Catholic Syrian

Bank, Dhanalakshmi Bank, Nainital Bank and Kotak Mahindra Bank are lowest five

banks. The highest consistency (low value of coefficient of variation) in business per

employee productivity was found in Development Credit Bank, Axis Bank, HDFC Bank,

ICICI Bank and Kotak Mahindra Bank while lowest consistency (high value of

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coefficient of variation) was found in South Indian Bank, YES Bank, Catholic Syrian

Bank, Tamilnad Mercantile Bank and Nainital Bank.

On the basis of mean of deposit per employee Indusind Bank, Axis Bank, YES Bank,

ICICI Bank and HDFC Bank are top five banks while Kotak Mahindra Bank, Nainital

Bank, Dhanalakshmi Bank, Catholic Syrian Bank and Ratnakar Bank are lowest five

banks. The highest consistency (low value of coefficient of variation) in deposit per

employee productivity was found in Axis Bank, Development Credit Bank, HDFC Bank,

ICICI Bank and Kotak Mahindra Bank while lowest consistency (high value of

coefficient of variation) was found in Karur Vysya Bank, Catholic Syrian Bank,

Tamilnad Mercantile Bank, Nainital Bank and YES Bank.

On the basis of mean of advances per employee ICICI Bank, YES Bank, Indusind Bank,

Axis Bank and HDFC Bank are top five banks while Development Credit Bank,

Dhanalakshmi Bank, Ratnakar Bank, Catholic Syrian Bank and Nainital Bank are lowest

five banks. The highest consistency (low value of coefficient of variation) in advances

per employee productivity was found in Development Credit Bank, HDFC Bank, Axis

Bank, Kotak Mahindra Bank and ICICI Bank while lowest consistency (high value of

coefficient of variation) was found in South Indian Bank, Catholic Syrian Bank, Nainital

Bank, Ratnakar Bank and Tamilnad Mercantile Bank.

On the basis of mean of total income per employee ICICI Bank, Ratnakar Bank, Indusind

Bank, YES Bank and Axis Bank are top five banks while City Union Bank, Lakshmi

Vilas Bank, Dhanalakshmi Bank, Nainital Bank and Catholic Syrian Bank are lowest five

banks. The highest consistency (low value of coefficient of variation) in total income per

employee productivity was found in Development Credit Bank, HDFC Bank, Axis Bank,

Indusind Bank and ING Vysya Bank while lowest consistency (high value of coefficient

of variation) was found in Lakshmi Vilas Bank, Federal Bank, Nainital Bank, YES Bank

and Ratnakar Bank.

On the basis of mean of total expenses per employee (low expenses per employee)

Lakshmi Vilas Bank, City Union Bank, Dhanalakshmi Bank, Catholic Syrian Bank and

Nainital Bank are top five banks while Ratnakar Bank, ICICI Bank, Indusind Bank, YES

Bank and Axis Bank are lowest five banks. The highest consistency (low value of

coefficient of variation) in total expenses per employee productivity was found in

18

Development Credit Bank, HDFC Bank, Axis Bank, Indusind Bank and ING Vysya

Bank while lowest consistency (high value of coefficient of variation) was found in

Nainital Bank, Dhanalakshmi Bank, Catholic Syrian Bank, YES Bank and Ratnakar

Bank.

On the basis of mean of spread per employee ICICI Bank, YES Bank, Axis Bank, HDFC

Bank, Indusind Bank are top five banks while Development Credit Bank, Lakshmi Vilas

Bank, Dhanalakshmi Bank, Catholic Syrian Bank, Ratnakar Bank are lowest five banks.

The highest consistency (low value of coefficient of variation) in spread per employee

productivity was found in Ratnakar Bank, HDFC Bank, Axis Bank, Indusind Bank and

Dhanalakshmi Bank while lowest consistency (high value of coefficient of variation) was

found in Nainital Bank, ICICI Bank, Lakshmi Vilas Bank, Federal Bank and YES Bank.

On the basis of mean of burden per employee ( low burden per employee) Karnataka

Bank, Axis Bank, Indusind Bank, ICICI Bank and Ratnakar Bank are top five banks

while Kotak Mahindra Bank, Development Credit Bank, HDFC Bank, Nainital Bank and

ING Vysya Bank are lowest five banks. The highest consistency (low value of coefficient

of variation) in burden per employee productivity was found in Indusind Bank, Axis

Bank, Ratnakar Bank, ICICI Bank and HDFC Bank while lowest consistency (high value

of coefficient of variation) was found in South Indian Bank, Federal Bank, City Union

Bank, YES Bank and Karnataka Bank.

Finding Related To Employee Productivity of Foreign Banks

The main findings relating to employee productivity of foreign banks of the study are as follow:

On the basis of mean of profit per employee JP Morgan Chase Bank, Bank of America,

Credit Agricole Bank, Barclays Bank and Bank of Nova Scotia are top five banks while

American Express Banking Co., Oman International Bank, JSC VTB Bank,

Commonwealth Bank of Australia, FirstRand Bank are lowest five banks. The highest

consistency (low value of coefficient of variation) in profit per employee productivity

was found in Oman International Bank, JSC VTB Bank, FirstRand Bank, Commonwealth

Bank of Australia and Standard Chartered Bank while lowest consistency (high value of

coefficient of variation) was found in Abu Dhabi Commercial Bank, Bank of Bahrain &

Kuwait, UBS AG, American Express Banking Co. and Chinatrust Commercial Bank.

19

On the basis of mean of business per employee Bank of Nova Scotia, Antwerp Diamond

Bank, Bank of America, Credit Agricole Bank and Bank of Tokyo Mitsubishi UFJ are

top five banks while Commonwealth Bank of Australia, American Express Banking Co.,

Bank International Indonesia, Sonali Bank, United Overseas Bank are lowest five banks.

The highest consistency (low value of coefficient of variation) in business per employee

productivity was found in United Overseas Bank, Citibank, Bank of Ceylon, Royal Bank

of Scotland and Bank of Bahrain & Kuwait while lowest consistency (high value of

coefficient of variation) was found in JSC VTB Bank, JP Morgan Chase Bank, Barclays

Bank, UBS AG and Bank International Indonesia.

On the basis of mean of deposit per Abu Dhabi Commercial Bank, JP Morgan Chase

Bank, Bank of Nova Scotia, DBS Bank and Bank of America are top five banks while

Bank International Indonesia, FirstRand Bank, JSC VTB Bank, Commonwealth Bank of

Australia and United Overseas Bank are lowest five banks. The highest consistency (low

value of coefficient of variation) in deposit per employee productivity was found in Bank

of Ceylon, Bank of Bahrain & Kuwait, Citibank, Royal Bank of Scotland and Antwerp

Diamond Bank while lowest consistency (high value of coefficient of variation) was

found Krung Thai Bank, Bank of Tokyo Mitsubishi UFJ, Bank International Indonesia,

Mashreq Bank, American Express Banking Co.

On the basis of mean of advances per employee Antwerp Diamond Bank, Bank of Nova

Scotia, Credit Agricole Bank, Bank of Tokyo Mitsubishi UFJ and Bank of America are

top five banks while AB Bank, Bank International Indonesia, Oman International Bank,

Sonali Bank and United Overseas Bank are lowest five banks. The highest consistency

(low value of coefficient of variation) in advances per employee productivity was found

in United Overseas Bank, Citibank, Royal Bank of Scotland, Bank of America and HSBC

while lowest consistency (high value of coefficient of variation) was found in UBS AG,

Oman International Bank, JP Morgan Chase Bank, Barclays Bank and Bank International

Indonesia.

On the basis of mean of total income per employee Credit Agricole Bank, JP Morgan

Chase Bank, UBS AG, Barclays Bank and Bank of America are top five banks while

Bank of Ceylon, Commonwealth Bank of Australia, JSC VTB BANK, AB Bank and

Sonali Bank are lowest five banks. The highest consistency (low value of coefficient of

20

variation) in total income per employee productivity was found in United Overseas Bank,

Citibank, Royal Bank of Scotland, Shinhan Bank and Sonali Bank while lowest

consistency (high value of coefficient of variation) was found in UBS AG, JP Morgan

Chase Bank, American Express Banking Co., Bank of Tokyo Mitsubishi UFJ and Bank

International Indonesia.

On the basis of mean of total expenses per employee (low expenses per employee) Bank

International Indonesia, JSC VTB Bank, Bank of Ceylon, AB Bank and Sonali Bank are

top five banks while Mashreq Bank, UBS AG, Credit Agricole Bank, Abu Dhabi

Commercial Bank and FirstRand Bank are lowest five banks. The highest consistency

(low value of coefficient of variation) in total expenses per employee productivity was

found in Commonwealth Bank of Australia, FirstRand Bank, Citibank, Royal Bank of

Scotland, United Overseas Bank while lowest consistency (high value of coefficient of

variation) was found in JSC VTB Bank, Abu Dhabi Commercial Bank, Bank of Tokyo

Mitsubishi UFJ, Bank International Indonesia and Mashreq Bank.

On the basis of mean of spread per employee UBS AG, JP Morgan Chase Bank, United

Overseas Bank, Credit Agricole Bank and Bank of America are top five banks while

Bank of Bahrain & Kuwait, AB Bank, American Express Banking Co., Oman

International Bank and Sonali Bank are lowest five banks. The highest consistency (low

value of coefficient of variation) in spread per employee productivity was found in

United Overseas Bank, Shinhan Bank, Antwerp Diamond Bank, Citibank and AB Bank

while lowest consistency (high value of coefficient of variation) was found in Bank

International Indonesia, Mizuho Corporate Bank, American Express Banking Co., Sonali

Bank and Oman International Bank.

On the basis of mean of burden per employee Bank of America, Bank International

Indonesia, Credit Agricole Bank, JP Morgan Chase Bank and Barclays Bank (low burden

per employee) are top five banks while UBS AG, United Overseas Bank, Mashreq Bank,

Commonwealth Bank of Australia and FirstRand Bank are lowest five banks. The highest

consistency (low value of coefficient of variation) in burden per employee productivity

was found in State Bank of Mauritius, Mizuho Corporate Bank, American Express

Banking Co., Oman International Bank and Standard Chartered Bank while lowest

21

consistency (high value of coefficient of variation) was found in Shinhan Bank, BNP

Paribas, HSBC, Mashreq Bank and Antwerp Diamond Bank.

Finding Related To Branch Productivity of Public Sector Banks

The main findings relating to branch productivity of public sector banks of the study are as

follow:

On the basis of mean of profit per employee IDBI Ltd., Corporation Bank, Oriental Bank

of Commerce, Bank of Baroda and State Bank of Travancore are top five banks while

Central Bank of India, Dena Bank, UCO Bank, Punjab & Sind Bank and United Bank of

India are lowest five banks. The highest consistency (low value of coefficient of

variation) in profit per branch productivity was found in Oriental Bank of Commerce,

State Bank of Patiala, Corporation Bank, State Bank of India (SBI) and Indian Overseas

Bank while lowest consistency (high value of coefficient of variation) was found in Bank

of Baroda, Dena Bank, Bank of Maharashtra, Punjab & Sind Bank and Central Bank of

India.

On the basis of mean of business per branch IDBI Ltd., Corporation Bank, Oriental Bank

of Commerce, Canara Bank and Bank of India are top five banks while Bank of

Maharashtra, Punjab & Sind Bank, Dena Bank, Allahabad Bank and United Bank of

India are lowest five banks. The highest consistency (low value of coefficient of

variation) in business per branch productivity was found in IDBI Ltd., Canara Bank, State

Bank of India (SBI), Union Bank of India and State Bank of Patiala while lowest

consistency (high value of coefficient of variation) was found in State Bank of Mysore,

Punjab & Sind Bank, Bank of Maharashtra, Allahabad Bank and Central Bank of India.

On the basis of mean of deposit per branch IDBI Ltd., Corporation Bank, Canara Bank,

Oriental Bank of Commerce and Bank of Baroda are top five banks while Allahabad

Bank, Dena Bank, United Bank of India, Central Bank of India, Bank of Maharashtra are

lowest five banks. The highest consistency (low value of coefficient of variation) in

deposit per branch productivity was found in State Bank of India (SBI), IDBI Ltd., Bank

of Maharashtra, State Bank of Patiala and Indian Overseas Bank while lowest

consistency (high value of coefficient of variation) was found in State Bank of Mysore,

Dena Bank, Bank of Baroda, Allahabad Bank and Punjab & Sind Bank.

22

On the basis of mean of advances per branch IDBI Ltd., Corporation Bank, Canara

Bank, Oriental Bank of Commerce and Bank of Baroda are top five banks while

Allahabad Bank, Dena Bank, Central Bank of India, Bank of Maharashtra and United

Bank of India are lowest five banks. The highest consistency (low value of coefficient of

variation) in advances per branch productivity was found in IDBI Ltd., State Bank of

Patiala, State Bank of India (SBI), Oriental Bank of Commerce and Canara Bank while

lowest consistency (high value of coefficient of variation) was found in Dena Bank, Bank

of Baroda, Allahabad Bank, United Bank of India and Punjab & Sind Bank.

On the basis of mean of total income per branch IDBI Ltd., Corporation Bank, Oriental

Bank of Commerce, State Bank of India (SBI) and Canara Bank are top five banks while

Allahabad Bank, Dena Bank, United Bank of India, Bank of Maharashtra and Central

Bank of India are lowest five banks. The highest consistency (low value of coefficient of

variation) in total income per branch productivity was found in IDBI Ltd., State Bank of

India (SBI), Bank of Maharashtra, Oriental Bank of Commerce and Indian Overseas

Bank while lowest consistency (high value of coefficient of variation) was found in

Punjab National Bank, UCO Bank, State Bank of Mysore, Punjab & Sind Bank and

Allahabad Bank.

On the basis of mean of total expenses per branch Allahabad Bank, Dena Bank, United

Bank of India, Central Bank of India and Bank of Maharashtra are top five banks while

IDBI Ltd., Oriental Bank of Commerce, Canara Bank, State Bank of India (SBI) and

Corporation Bank are lowest five banks. The highest consistency (low value of

coefficient of variation) in total expenses per branch productivity was found in State

Bank of India (SBI), IDBI Ltd., Bank of Maharashtra, Indian Bank and United Bank of

India while lowest consistency (high value of coefficient of variation) was found in

Corporation Bank, State Bank of Patiala, State Bank of Mysore, Allahabad Bank and

Punjab & Sind Bank.

On the basis of mean of spread per branch IDBI Ltd., State Bank of India (SBI),

Corporation Bank, Oriental Bank of Commerce and Bank of Baroda are top five banks

while UCO Bank, Dena Bank, Bank of Maharashtra, United Bank of India and Central

Bank of India are lowest five banks. The highest consistency (low value of coefficient of

variation) in profit per employee productivity was found in Corporation Bank, Vijaya

23

Bank, Indian Overseas Bank, State Bank of Patiala and Oriental Bank of Commerce

while lowest consistency (high value of coefficient of variation) was found in UCO Bank,

State Bank of Mysore, Indian Bank, Allahabad Bank and IDBI Ltd.

On the basis of mean of burden per branch IDBI Ltd., Dena Bank, State Bank of

Hyderabad, Corporation Bank and State Bank of Patiala are top five banks while State

Bank of India (SBI), Syndicate Bank, Indian Overseas Bank, Punjab & Sind Bank and

Bank of Maharashtra are lowest five banks. The highest consistency (low value of

coefficient of variation) in burden per branch productivity was found in IDBI Ltd.,

Syndicate Bank, Indian Bank, United Bank of India and Punjab National Bank while

lowest consistency (high value of coefficient of variation) was found in Dena Bank, Bank

of India, State Bank of Patiala, State Bank of Hyderabad and Corporation Bank.

On the basis of mean and coefficient variation the branch productivity (considering all

eight indicators) of IDBI Ltd. was highest and consistent in public sector banks during

2001-12. The IDBI Ltd., Oriental Bank of Commerce, State Bank of India (SBI), State

Bank of Patiala, Canara Bank are top five banks and Dena Bank, United Bank of India,

Andhra Bank, Central Bank of India and Punjab & Sind Bank are lowest five banks

regarding branch productivity in public sector banks during the study period.

Finding Related To Branch Productivity of Private Sector Banks

The main findings relating to branch productivity of private sector banks of the study are as

follow:

On the basis of mean of profit per branch YES Bank, ICICI Bank, Kotak Mahindra Bank,

Axis Bank and HDFC Bank are top five banks while Ratnakar Bank, Lakshmi Vilas

Bank, Catholic Syrian Bank, Dhanalakshmi Bank and Development Credit Bank are

lowest five banks. The highest consistency (low value of coefficient of variation) in profit

per employee productivity was found Development Credit Bank, Kotak Mahindra Bank,

Karnataka Bank, Axis Bank and HDFC Bank while lowest consistency (high value of

coefficient of variation) was found in Catholic Syrian Bank, Indusind Bank, ING Vysya

Bank, Ratnakar Bank and Dhanalakshmi Bank.

On the basis of mean of business per branch YES Bank, ICICI Bank, Axis Bank, HDFC

Bank and Indusind Bank are top five banks while Ratnakar Bank, Lakshmi Vilas Bank,

24

Catholic Syrian Bank, Dhanalakshmi Bank and Nainital Bank are lowest five banks. The

highest consistency (low value of coefficient of variation) in business per branch

productivity was found Development Credit Bank, Kotak Mahindra Bank, Indusind

Bank, Axis Bank and HDFC Bank while lowest consistency (high value of coefficient of

variation) was found in ICICI Bank, Lakshmi Vilas Bank, Nainital Bank, Ratnakar Bank

and Dhanalakshmi Bank.

On the basis of mean of deposit per branch YES Bank, ICICI Bank, Axis Bank, HDFC

Bank and Indusind Bank are top five banks while Lakshmi Vilas Bank, Catholic Syrian

Bank, Dhanalakshmi Bank, Nainital Bank and Ratnakar Bank are lowest five banks. The

highest consistency (low value of coefficient of variation) in deposit per employee

productivity was found in Axis Bank, Development Credit Bank, HDFC Bank, ICICI

Bank and Kotak Mahindra Bank while lowest consistency (high value of coefficient of

variation) was found in Karur Vysya Bank, Catholic Syrian Bank, Tamilnad Mercantile

Bank, Nainital Bank and YES Bank.

On the basis of mean of advances per branch YES Bank, ICICI Bank, Axis Bank, Kotak

Mahindra Bank and Indusind Bank are top five banks while Ratnakar Bank, Lakshmi

Vilas Bank, Catholic Syrian Bank, Dhanalakshmi Bank and Nainital Bank are lowest five

banks The highest consistency (low value of coefficient of variation) in advances per

branch productivity was found Kotak Mahindra Bank, Development Credit Bank,

Indusind Bank, Axis Bank and HDFC Bank while lowest consistency (high value of

coefficient of variation) was found in Lakshmi Vilas Bank, Tamilnad Mercantile Bank,

Nainital Bank, Ratnakar Bank and Dhanalakshmi Bank.

On the basis of mean of total income per branch YES Bank, ICICI Bank, Axis Bank,

Indusind Bank and Kotak Mahindra Bankare top five banks while South Indian Bank,

Lakshmi Vilas Bank, Catholic Syrian Bank, Dhanalakshmi Bank and Nainital Bank are

lowest five banks. The highest consistency (low value of coefficient of variation) in total

income per branch productivity was found Development Credit Bank, Yes Bank, Kotak

Mahindra Bank, Axis Bank and HDFC Bank while lowest consistency (high value of

coefficient of variation) was found in City Union Bank, Nainital Bank, Dhanalakshmi

Bank, Ratnakar Bank and Dhanalakshmi Bank.

25

On the basis of mean of total expenses per branch South Indian Bank, Lakshmi Vilas

Bank, Catholic Syrian Bank, Dhanalakshmi Bank and Nainital Bank are top five banks

while YES Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and Indusind Bank are

lowest five banks. The highest consistency (low value of coefficient of variation) in total

expenses per branch productivity was found Yes Bank, Development Credit Bank,

Indusind Bank, Axis Bank and HDFC Bank while lowest consistency (high value of

coefficient of variation) was found in City Union Bank, Karur Vysya Bank, Lakshmi

Vilas Bank, Dhanalakshmi Bank and Ratnakar Bank.

On the basis of mean of spread per branch Kotak Mahindra Bank, YES Bank, ICICI

Bank, Axis Bank, and HDFC Bank are top five banks while Ratnakar Bank, Lakshmi

Vilas Bank, Catholic Syrian Bank, Dhanalakshmi Bank and Nainital Bank are lowest five

banks. The highest consistency (low value of coefficient of variation) in spread per

branch productivity was found Ratnakar Bank, Kotak Mahindra Bank, Development

Credit Bank, HDFC Bank, and Axis Bank while lowest consistency (high value of

coefficient of variation) was found in City Union Bank, Federal Bank, South Indian

Bank, ING Vysya Bank, and Lakshmi Vilas Bank.

On the basis of mean of burden per branch Karnataka Bank, Axis Bank, Indusind Bank,

ICICI Bank and Ratnakar Bank are top five banks while Kotak Mahindra Bank, HDFC

Bank, Development Credit Bank, YES Bank, ING Vysya Bank are lowest five banks.

The highest consistency (low value of coefficient of variation) in spread per branch

productivity was found Indusind Bank, ICICI Bank, Ratnakar Bank, Axis Bank and

Nainital Bank while lowest consistency (high value of coefficient of variation) was found

in Federal Bank, City Union Bank, Yes Bank, Karnataka Bank and Dhanalakshmi Bank.

In private sector banks the branch productivity of Axis Bank, HDFC Bank, YES Bank,

Indusind Bank and Kotak Mahindra Bank Ltd. were highest and consistent and South

Indian Bank, Nainital Bank, Lakshmi Vilas Bank, Ratnakar Bank, Dhanalakshmi Bank

were lowest during the study period. The new private sector banks (seven Banks) branch

productivity is higher than old private sector banks (thirteen banks).

26

Finding Related To Branch Productivity of Foreign Banks

The main findings relating to branch productivity of foreign banks of the study are as follow:

On the basis of mean of profit per branch JP Morgan Chase Bank, Bank of America,

Deutsche Bank, Barclays Bank and Citibank are top five banks while United Overseas

Bank, Oman International Bank, JSC VTB Bank, Commonwealth Bank of Australia and

FirstRand Bank are lowest five banks. The highest consistency (low value of coefficient

of variation) in profit per branch productivity was found Oman International Bank, JSC

VTB Bank, FirstRand Bank, Commonwealth Bank of Australia and Mashreq Bank while

lowest consistency (high value of coefficient of variation) was found in Barclays Bank,

Bank International Indonesia, Bank of Bahrain & Kuwait, American Express Banking

Co. and Chinatrust Commercial Bank.

On the basis of mean of business per branch JP Morgan Chase Bank, Deutsche Bank,

Bank of America, Citibank and HSBC are top five banks while JSC VTB Bank, Mashreq

Bank, Sonali Bank, Bank International Indonesia and United Overseas Bank are lowest

five banks. The highest consistency (low value of coefficient of variation) in business per

branch productivity was found United Overseas Bank, Bank of Ceylon, Citibank, Bank of

Bahrain & Kuwait and Royal Bank of Scotland while lowest consistency (high value of

coefficient of variation) was found in Bank of Tokyo Mitsubishi UFJ, Bank International

Indonesia, UBS AG, JP Morgan Chase Bank and Barclays Bank.

On the basis of mean of deposit per branch JP Morgan Chase Bank, Citibank, DBS Bank,

Deutsche Bank and HSBC are top five banks while Sonali Bank, Bank International

Indonesia, JSC VTB Bank, Commonwealth Bank of Australia and United Overseas Bank

are lowest five banks. The highest consistency (low value of coefficient of variation) in

deposit per branch productivity was found United Overseas Bank, Bank of Ceylon, Royal

Bank of Scotland, Bank of Bahrain & Kuwait and Antwerp Diamond Bank while lowest

consistency (high value of coefficient of variation) was found in DBS Bank, JP Morgan

Chase Bank, Mashreq Bank, Bank International Indonesia and Barclays Bank.

On the basis of mean of advances per branch JP Morgan Chase Bank, Citibank, Bank of

Tokyo Mitsubishi UFJ, Bank of America and Bank of Nova Scotia are top five banks

while Krung Thai Bank, Oman International Bank, Bank International Indonesia, Sonali

27

Bank and United Overseas Bank are lowest five banks. The highest consistency (low

value of coefficient of variation) in advances per branch productivity was found United

Overseas Bank, Citibank, Royal Bank of Scotland, Bank of America and Bank of Ceylon

while lowest consistency (high value of coefficient of variation) was found in Barclays

Bank, Oman International Bank, UBS AG, Bank International Indonesia and JP Morgan

Chase Bank.

On the basis of mean of total income per branch JP Morgan Chase Bank, Bank of

America, Deutsche Bank, Barclays Bank and Citibank are top five banks while United

Overseas Bank, Krung Thai Bank, JSC VTB Bank, Bank International Indonesia and

Sonali Bank are lowest five banks. The highest consistency (low value of coefficient of

variation) in total income per branch productivity was found Deutsche Bank, United

Overseas Bank, Bank of Ceylon,Royal Bank of Scotland and Sonali Bank while lowest

consistency (high value of coefficient of variation) was found in DBS Bank, Bank

International Indonesia, UBS AG, Mizuho Corporate Bank and JP Morgan Chase Bank.

On the basis of mean of total expenses per branch JSC VTB Bank AB Bank, Krung Thai

Bank, Bank International Indonesia, Sonali Bank and FirstRand Bank (low expenses per

branch) are top five banks while JP Morgan Chase Bank, American Express Banking Co.,

Barclays Bank, UBS AG and Deutsche Bank are lowest five banks. The highest

consistency (low value of coefficient of variation) in total expenses per branch

productivity was found United Overseas Bank, Bank of Ceylon, FirstRand Bank,

Commonwealth Bank of Australia and Bank of Bahrain & Kuwait while lowest

consistency (high value of coefficient of variation) was found in Bank International

Indonesia, JP Morgan Chase Bank, Barclays Bank, DBS Bank and Mashreq Bank.

On the basis of mean of spread per branch JP Morgan Chase Bank, UBS AG, Citibank,

Barclays Bank and Deutsche Bank are top five banks while AB Bank, Mashreq Bank,

Oman International Bank and Sonali Bank are lowest five banks. The highest

consistency (low value of coefficient of variation) in spread per branch productivity was

found AB Bank, United Overseas Bank, Royal Bank of Scotland, Commonwealth Bank

of Australia and Antwerp Diamond Bank while lowest consistency (high value of

coefficient of variation) was found in Barclays Bank, JP Morgan Chase Bank, Mizuho

Corporate Bank, Sonali Bank and Oman International Bank.

28

On the basis of mean of burden per branch Bank of Nova Scotia, Credit Agricole Bank,

Barclays Bank, Bank of America and JP Morgan Chase Bank (low burden per branch)

are top five banks while UBS AG, FirstRand Bank, Commonwealth Bank of Australia,

DBS Bank and Royal Bank of Scotland are lowest five banks. The highest consistency

(low value of coefficient of variation) in burden per branch productivity was found State

Bank of Mauritius, Bank International Indonesia, Oman International Bank, Mizuho

Corporate Bank and Barclays Bank while lowest consistency (high value of coefficient of

variation) was found in BNP Paribas, American Express Banking Co., HSBC, Mashreq

Bank and Antwerp Diamond Bank.

FINDING RELATED TO EMPLOYEE PRODUCTIVITY OF INDIAN

SCHEDULED COMMERCIAL BANKS

The main findings relating to employee productivity of Indian scheduled commercial banks of the

study are as follow:

The profit per employee productivity was highest of Foreign Banks followed by private

sector banks and public sector banks. The decrease in concentration index shows that the

competition among the banks has increased. The lower dependence on deposits as well as

access to low cost deposits enabled foreign banks to register higher profits than other

bank groups in India.

The business per employee productivity was highest of Foreign Banks followed by

private sector banks and public sector banks. The private banks have highest business per

employee for eight years up to 2009 than public sector banks. The decrease in

concentration index shows that the competition among the banks has increased. The

foreign bank has highest business per employee because they are able to access

sufficiently low cost fund and able to deploy funds with higher returns. The Report on the

Committee on Financial Sector Assessment (CFSA), RBI in 2009 noted that „the

relatively higher productivity ratios of new PrSBs and FBs in terms of business per

employee could be due to increased mechanization, lower staff strength and increased

outsourcing activities as compared to PSBs. PSBs have a legacy of labour-intensive work

procedures and greater penetration in rural areas, which also result in comparatively low

business per employee.

29

The deposit per employee productivity was highest of foreign banks followed by private

sector banks and public sector banks. The private banks have highest deposit per

employee for seven years up to 2008 than public sector banks. The decrease in index

shows the increase in the competition between the banks regarding deposit per employee.

The advance per employee productivity was highest of Foreign Banks followed by

private sector banks and public sector banks. The private banks have highest advances

per employee for eight years up to 2009 than public sector banks. The decrease in index

shows the increase in the competition between the banks regarding advances per

employee.

The total income per employee productivity was highest of Foreign Banks followed by

private sector banks and public sector banks. The decrease in index shows the increase in

the competition between the banks regarding total income per employee. The total

income per employee of foreign is higher because foreign banks have well diversification

of income.

The total expense per employee productivity was highest of Foreign Banks followed by

private sector banks and public sector banks. The private banks have highest total

expense per employee except in three years from 2006 to 2008 than public sector banks.

The decrease in index shows the increase in the competition between the banks regarding

total expense per employee. Foreign banks incurred relatively higher expenditure than

other bank groups for managing their assets. The possible reason for these high operating

expenses of Foreign banks because these banks generally spend more for technology up-

gradation, on costly real estate, salaries and also for advertisement and publicity. Though

this spending may impinge upon their profits in the short run, it may yield a high

dividend in the long run.

The spread per employee productivity was highest of Foreign Banks followed by private

sector banks and public sector banks. The decrease in index shows the increase in the

competition between the banks regarding spread per employee. FBs gained on account of

the higher difference between cost of funds and return on funds, i.e., higher spread.

The private sector banks are on the top position regarding low burden per employee then

followed by foreign and public sector banks. The decrease in index shows the increase in

the competition between the banks regarding burden per employee.

30

The employee productivity (considering 8 indicators) of foreign banks is highest then

private and public sector banks. Thus, we found that even with the highest expenses per

employee, foreign banks report higher profit per employee than the other bank groups

(public and private). However, when we assess the other productivity indicators, foreign

banks are well placed than the other bank groups in India.

It might well be possible that foreign bank entry has both positive and negative effects on

domestic banks (public and private banks). On the positive side, technology spillovers of

new banking techniques and better management practices may lead domestic banks to

initially raise their costs in order to implement such practices. However, over time, as

such practices get imbibed in domestic banks; they are able to proactively compete with

their foreign counterparts. At the same time, with increased competition arising out of

foreign bank entry, there might be a switch of good-quality customers to foreign banks,

which, over time, would get reflected in a weakening of loan portfolio of domestic banks.

This would, in effect, necessitate higher loan loss provisioning by domestic banks (i.e.,

higher costs).

FINDING RELATED TO BRANCH PRODUCTIVITY OF INDIAN

SCHEDULED COMMERCIAL BANKS

The main findings relating to branch productivity of Indian scheduled commercial banks of the

study are as follow:

The profit per branch productivity was highest of Foreign Banks followed by private

sector banks and public sector banks. The decrease in concentration index shows that the

competition among the banks has increased. The lower dependence on deposits as well as

access to low cost deposits enabled FBs to register higher profits than other bank groups

in India.

The business per branch productivity was highest of Foreign Banks followed by private

sector banks and public sector banks. The private banks have highest business per branch

than public sector banks. The decrease in concentration index shows that the competition

among the banks has increased. The foreign bank has highest business per branch

because they are able to access sufficiently low cost fund and able to deploy funds with

higher returns.

31

The deposit per branch productivity was highest of Foreign Banks followed by private

sector banks and public sector banks. The private banks have highest deposit per branch

than public sector banks. The decrease in index shows the increase in the competition

between the banks regarding deposit per branch.

The advance per branch productivity was highest of Foreign Banks followed by private

sector banks and public sector banks. The private banks have highest advances per branch

than public sector banks. The decrease in index shows the increase in the competition

between the banks regarding advances per branch.

The total income per branch productivity was highest of Foreign Banks followed by

private sector banks and public sector banks. The decrease in index shows the increase in

the competition between the banks regarding total income per branch. The total income

per branch of foreign is higher because foreign banks have well diversification of income.

The total expense per branch productivity was highest of Foreign Banks followed by

private sector banks and public sector banks. The private banks have highest total

expense per branch than public sector banks. The decrease in index shows the increase in

the competition between the banks regarding total expense per branch. So, on the basis of

expenses per branch public sector banks are on the top position.

The spread per branch productivity was highest of Foreign Banks followed by private

sector banks and public sector banks. The decrease in index shows the increase in the

competition between the banks regarding spread per branch. FBs gained on account of

the higher difference between cost of funds and return on funds, i.e., higher spread.

The private sector banks are on the top position regarding low burden per branch then

followed by public sector banks and foreign banks. The decrease in index shows the

increase in the competition between the banks regarding burden per branch.

The branch productivity (considering eight indicators) of foreign banks is highest then

private and public sector banks. Thus, we found that even with the highest expenses per

branch, and highest burden per branch, foreign banks report higher profit per branch than

the other bank groups (public and private). However, when we assess the other

productivity indicators, foreign banks are well placed than the other bank groups in India.

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FINDING RELATED TO COMPARISON OF PRODUCTIVITY OF OLD

AND NEW PRIVATE SECTOR BANKS

The employee and branch productivity of new private sector banks is higher than old

private sector banks due to better assets liability management, better customer

relationship management and technology up-gradation.

FINDING RELATED TO PRODUCTIVITY OF INDIAN COMMERCIAL

BANKS IN PRE-GLOBAL FINANCIAL CRISIS AND POST- GLOBAL

FINANCIAL CRISIS

The analysis for two different sub-periods reveals that in spite of global financial crisis,

Indian banks continue to show increasing trends in productivity. However, there is

evidence of shrink in the market resulting in less productivity (labour and branch) in post

global financial crisis period in case of foreign banks.

FINDING RELATED TO DEVELOPMENT FINANCIAL INSTITUTION

A broad policy framework was outlined in the Mid-Term Review of Monetary and Credit

Policy of 1999-2000 of RBI and DFIs were given the option to transform into a bank.

The operational guidelines for enabling a DFI to convert to a universal bank were issued

in 2001. Government repealed IDBI act and converted IDBI Ltd. into a banking company

in September, 2004. The productivity of IDBI Ltd. was highest in public sector banks.

FINDING RELATED TO BANK NETWORK

Geographical branch penetration score (37 branches per 1000 km2.) of SCBs in India as

on 31st March 2012 indicates that people have to travel considerable distance to avail

banking services in India. There has been considerable increase in bank branch expansion

in India, but, it is not in the proportion to increase in population in India.

FINDING RELATED TO PRODUCTIVITY ANALYSIS OF INDIAN

SCHEDULED COMMERCIAL BANKS: CAMEL MODEL

The main findings relating to productivity of Indian scheduled commercial banks of the study are

as follow:

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The analysis shows that the CRAR is very high in case of foreign banks and raked first.

The next place is of private banks and it is lowest in public sector banks among the

three sectors. On the basis of advances to assets ratio private sector banks was at the

first position followed by public banks and foreign banks. On the basis of group averages

of sub-parameters of capital adequacy private banks were at the top position followed by

foreign banks and public banks stood at the last position due to its poor performance in

CRAR.

In terms of assets quality the foreign banks was at the top position with group average

followed by private banks and public banks was positioned at last.

In context of management efficiency, foreign banks was at the top most position followed

by private banks and public banks positioned at last due to its poor performance in three

(TA/TD, PPE and BPE) sub parameters of management.

In terms of earning quality the foreign banks was at the top most position followed by

private banks and public banks positioned at last due to its poor performance in three

(OP/TA, NIM/TA and Return on assets) sub parameters of management.

In context of liquidity foreign banks was at the top most position followed by private

banks and public banks positioned at last due to its poor performance in two (Cash

deposit Ratio and Investment to deposit ratio) sub parameters liquidity.

Overall performance shows that foreign bank is ranked one followed by private banks

and public sector banks were at the bottom most position.

FINDING RELATED TO JOB SATISFACTION OF EMPLOYEES

The main findings relating to job satisfaction of employees are as follow:

Finding related to profile of respondents

Regarding profile of respondents, majority of them are males (79.2 per cent), female

being (20.8 per cent). It is found that 65.8 per cent of the respondents are married as in

comparison to only 34.2 per cent of unmarried respondent. 16.7 per cent of the

respondents fall in the age group of 18 to 25 years, followed by 52.5 per cent in the age

group of 25 to 35 years, whereas 1.7 per cent in the age group of 35 to 45 years and 29.2

per cent in the age group of 45 years and above. 69.2 per cent of respondents have the

total service experience of 1-15 years. Further, the sample had maximum representation

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from post- graduate (70 per cent), whereas there were 23.3 per cent of graduate

respondent. Further, 57.5 per cent of respondents were earning a monthly salary of

`32000-47000.

Finding related to Job Satisfaction

The factor analysis conducted on thirty six statements related to job satisfaction of banks

employees has yield thieteen factors. These factors explain 74.9 per cent of the total

variance. These factors are named as „Recognition by Top Management‟, „Job Aspect‟,

„Communication‟, „Nature of Job‟, „Role Clarity‟, „Performance Appraisal‟, „Job

Security‟, „Education Qualification‟, „Training‟, „Competent to Work‟ and

„Remuneration‟. These factors have been extracted by using principal components

analysis and varimax rotation.

Finding related to comparison of private and public sector banks regarding Job Satisfaction

There is significant difference between the employees of Public Sector and Private Sector

Banks regarding various aspects of Job satisfaction. Thus, null hypothesis is rejected.

It is found that there is difference in the level of job satisfaction between public banks

and private banks regarding some factors like workload, employee empowerment,

supervision, salary offered to employees, performance appraisal, training and transfer

policy.

When it comes to remuneration, the employees in private banks are more satisfied than

the employees in public bank.

It is found that that the public sector banks employees are dissatisfied with the transfer

policy while private sector bank employees are satisfied with the transfer policy.

It is found that shows that the public banks employees are more satisfied with the

performance appraisal as compared to private sector bank employees.

It is found that that the public sector banks employees are satisfied with the amount of

responsibility as compared to private sector banks employees.

It is found that the employees of PSBs are more satisfied with the aspects of supervision

than the employees of PVSBs.

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FINDING RELATED TO JOB SATISFACTION AND PRODUCTIVITY

The old view that “A happy worker is a productive worker” does not clarify the complex

relationship between job satisfaction and productivity. High job satisfaction leads to

improved productivity, decreased turnover and less job stress. The private sector banks

productivity is higher than public sector banks. The job satisfaction is also higher in

private sector banks employees. So higher satisfaction leads to higher productivity.

SUGGESTIONS

The suggestions on the basis of the findings of the study are as follow:

SUGGESTIONS RELATING TO PUBLIC SECTORS BANKS

The suggestions related to public sector banks are as follow:

The public sector banks suffer from the dual control by RBI as well as government. The

government should make clear policy in what matter banks will follow govertment and

RBI.

The PSBs should gear up their appraisal systems in such a manner ensuring better control

over the defaulters.

The PSBs should bring operational efficiency and should diversify their activities into

non- traditional banking activities. They should concentrate on non-interest income

avenues. Diversification based on niches and core competences are more likely to be

successful. The strategy of offering the right kinds of product in the right market for

products rather than providing everything everywhere is important to achieve a

competitive advantage.

In order to raise productivity and profitability PSBs should spell turnover strategies,

income- oriented and cost-oriented strategies from time to time. Better management

information system, credit monitoring and cash management can result increaseing

productivity

The public sector banks must improve their credit lending policies so as to improve asset

quality and profitability.

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In PSBs, low compensation is the biggest de-motivator for the efficient employees. So it

is suggested that the pay should be linked to individual performance, group performance

and overall business result of the bank.

The public sector banks should evolve strategies for handling the recovery of NPAs.

The private banks have comparatively greater freedom in terms of recruitment, salary and

compensation. If possible same design of human resource should be followed by public

sector banks.

The public sector banks require substantial capital to support growth. Reserve Bank has

made an estimate of the additional capital requirements of domestic banks for full Basel

III implementation till March 2018. These estimates are based on two broad assumptions:

(i) increase in the risk weighted assets of twenty per cent p.a.; (ii) internal accrual of the

order of one per cent of risk weighted assets.

Banks should evolve a foolproof performance appraisal system covering the entire

spectrum of staff to obviate any feeling of discrimination and to instill confidence among

the employees.

The greater customer-orientation is the only way to retain customer loyalty and stay

ahead of competition. Public sector banks need to bring about total customer orientation

not only in their products/services but their policies and strategies should also be

customer focused.

The different committees related to public sector banks have enumerated a number of

problems relating to HRM in public sector banking such as over manning, low man

power productivity, indiscipline, restrictive practices, lack of management commitment

to training etc. Banks need to build a service culture using technology in a customer

friendly manner. This requires reorienting HRD strategies in public sector banks on an

urgent basis and banks need to emphasize right size, right skills and right attitude.

SUGGESTION RELATED TO BRANCH PRODUCTIVITY

The suggestions related to branch productivity are as follow:

The banks should encourage customers to carry out transaction on digital channels which

lead to improved customer retention and higher balances in accounts.

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To increase branch productivity the banks should allow and encourage customer to use

self –services machines like bulk note acceptors, passbook updation kiosk and check

deposit machines. This leads to reduce branch traction footfalls by 30-40%, lower

proportion of non-sales staff in the branches and customer can access the machines 24x7.

For better branch productivity a new thinking on branch design is required. Branches of

the future would be modular, paperless, with no back office, and with on the spot

fulfillment.

The banks have huge opportunity to use information analytics for credit assessment and

early warning systems. Credit processes need to be re–engineered with technology to

reduce response time. Banks with slow credit process have high NPA since best

customers get fed up and leave. Credit is a judgment decision and cannot be abdicated to

models. Capability and intuition of the credit cadre has to be enhanced through teaming

and apprenticeship. Use of gold as collateral for agriculture lending could double the

agriculture credit flow at very low NPA.

Customer services are create new challenges, to cope up with, technology will be the key

to reduce transaction costs, offering customized products and managing risks. This is

compelling banks to provide internet banking facilities and increasingly customers are

demanding fast, convenient and glitch free banking services.

SUGGESTIONS RELATING TO PRIVATE SECTORS BANKS

The suggestions related to private sector banks are as follow:

The old private sector banks should learn from new private sector banks. Their

productivity is higher than old private sector banks.

On the basis of my personal observation and interview of employees responsiveness,

empathy, tangibility of foreign banks was higher than private banks employees. So

private banks should consider it for better customer relationship.

SUGGESTIONS RELATING TO RELATING TO FOREIGN BANKS

The suggestions related to foreign banks are as follow:

The foreign banks have been operating in India as branches of the parent banks. The

domestic incorporation of foreign banks i.e. subsidiarisation is necessary.

The number of branches permitted each year to foreign banks has been higher than the

WTO commitments of twelve branches in a year. In addition, foreign banks in India are

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free to undertake any banking activity (e.g., wholesale, retail, investment banking,

foreign exchange, etc.) which is allowed to domestic banks. In Singapore, China and the

US, strict restrictions have been imposed on the kind of businesses that could be carried

out by foreign banks within their jurisdictions. During 2003-07, India allowed US-based

banks to open nineteen branches (excluding the off-site ATMs). But, in the same period,

the US did not allow a single Indian bank to open a branch or subsidiary or representative

office in its territory despite many requests made by public and private sector banks.

Under the India-Singapore Comprehensive Economic Cooperation Agreement (2005),

the RBI allowed market access to three Singaporean banks as per the agreement but the

Monetary Authority of Singapore refused to fulfill its time-bound commitment for

providing full bank license (Qualifying Full Bank status) to three Indian banks. These are

some of the important policy questions relating to foreign banks.

The most of branches of foreign banks are located in metropolitan areas and major Indian

cities where bulk of premium banking business is concentrated. It is distressing to note

that foreign banks such as Standard Chartered Bank and BNP Paribas have not yet

opened a single branch in the rural areas despite operating in India for more than 150

years. The foreign banks “cherry-pick” the most profitable businesses and affluent

customers residing in the metros and urban areas. The contribution of foreign banks in

the opening of “no frills” bank account under the financial inclusion program has been

abysmal, as documented in various RBI reports. Raghuram Rajan, the new Governor of

the Reserve Bank of India, announced that the RBI will soon issue new rules allowing a

more liberal entry of foreign banks in India. These are some of the important policy

questions which need to be addressed before issue new rules for foreign banks.

Several banks (including HSBC, UBS, JPMorgan Chase and Credit Suisse) have recently

paid billions of dollars in fines for their alleged role in Libor rate-fixing scandal, money

laundering and other corrupt practices. Should India give such banks a free run?

LEARNING FROM INTERNATIONAL EXPERIENCES: In South Korea, foreign

bank played an importantt role in building of short-term foreign borrowings which

induced financial fragility and risks in the Korean banking sector before and after the

2008 financial crisis. In Uganda, a rapid entry of foreign banks through acquisitions and

takeovers has led to a situation where rural areas remain under-banked and the bulk of

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bank credit goes to trade. In many Latin American countries such as Brazil, Mexico and

Chile, there was a considerable decline in competition in the aftermath of liberal entry of

foreign banks. Finally, we should not forget that the Indian banking system has remained

resilent in global crisis period; thanks to a limited presence of foreign banks, enlarged

state ownership of the banking system, and a relatively strong regulatory framework.

SUGGESTIONS RELATING TO JOB SATISFACTION

The suggestions related to job satisfaction are as follow:

Job satisfaction of bank employees should be evaluated periodically for evolving

dynamic and pragmatic policies for organization's growth and development.

Private Sector Banks should pay attention to the extent of direction employees receive

from their boss since they are exhibiting lower level of satisfaction in this regard.

Public Sector Banks can influence the satisfaction of their employees by giving the

attractive incentive such as pay increments and rewards.

Training and development programmes must be designed in such a manner that the

employees are able to get regular update knowledge and skills.

The work given to be assigned to the employee according to their competencies.

RECOMMENDATION FOR FURTHER RESEARCH

I recommend the following areas where future research may be conducted:

On the basis of present study and literature review I found that there is no bench marking

regarding employee productivity and branch productivity to compare performance of

banks. In future, researcher can work on study benchmarking of public, private and

foreign banks.

In future, researcher may study impact of non- performing assets (NPA) on employee

productivity and branch productivity.

In further, researcher may study impact of foreign banks entry on the performance of

domestic banks (public and private banks) regarding mode (Greenfield versus takeover)

and type (branch versus subsidiary) in India.

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